Basically you don't want games to have good AI because it wouldn't be any fun to play against.
I read this opinion often and am always confused.
I don't automatically link good AI to higher difficulty for the player.
For me, better AI means that enemies react more dynamic, have more interactions with the environments, more complex behaviour and patterns etc. There's a lot of possibilities to make combat more engaging without making the enemies more difficult, it can be balanced.
Also,I think of AI in the context of open world games and our current AI behaviour is very primitive.